6. Starting an emergency fund

Your retirement savings should be off-limits until you actually retire. You shouldn’t dip into them under any circumstances as, in most cases, doing so could subject you to huge fees and penalties. Likewise, you shouldn’t go into debt either when you’re in an emergency. Otherwise, you’ll be starting a debt cycle all over again.

It’s important to have some money set aside for rainy days. For starters, work on saving up at $1,000. This should be your first mini goal and it should give you the boost you need to keep going- after all, achievements help us work harder.

Your next goal should be saving up around 6 – 9 months worth of your income. This amount of money should help cover a variety of issues such as problems with your home, medical emergencies, or losing your job. You need to ensure that you’ll have a comfortable cushion while looking for another opportunity.

We guarantee that you’ll be able to sleep easy knowing you have a rainy day fund. Once you reach the finish line you’ll also have an easier time supplementing your other needs such as savings or paying off debts.